Corn futures at the Chicago Board of Trade closed slightly higher on Tuesday, supported by the strength in the neighbouring soyabean pit, traders said. The day's feature was rolling of December positions before first notice day on November 30. "Other than that there really wasn't anything in corn," one floor broker said.
CBOT corn futures closed steady to 1/2 cent per bushel higher, with December up 1/2 at $1.98. The front month keeps close to the $2 mark, which is expected to continue through expiration of December options on Friday.
A large open interest in December $2 put options of over 20,000 lots underpins the December contract.
Soyabean futures closed technically strong, 6 to 8 cents higher, amid fears of soya rust spreading in the United States. Funds were net buyers of 500 to 1,000 corn lots.
Most of the floor activity was in spreading as firms rolled December positions.
Reface spread 1,000 December-March, 1,000 December-May and 1,500 Mar/December Volume was heavy estimated at 112,161 futures and 19,451 options.
A huge US corn supply as farmers finish harvesting this year's projected record large crop along with increased competition for export business continue to loom over prices.
China National Grains and Oils Information Center on Tuesday estimated China's 2004-corn crop at 131.7 million tonnes, the second largest in history.
The largest Chinese corn crop of 133.0 million tonnes was harvested in 1998,
USDA is currently estimating the Chinese corn production at 126.0 million tonnes. Harvest of this year's huge US corn crop was nearing completion.
USDA reported late on Monday that farmers harvested 92 percent of their corn on Sunday.
Midwest cash basis bids for corn were steady to firm on Tuesday at interior locations where farmer sales were not keeping up with processor demand, traders said.
CBOT oat futures closed steady to 3/4 cent higher, with December unchanged at $1.50-1/4 per bushel.
Traders continued to roll their December positions before first notice day on November 30.
Oat futures prices remain underpinned by strong Canadian cash markets.
Canadian farmers are reluctant sellers of oats as continued strength in the Canadian dollar vs. the US dollar deterred them from pricing oats against the US dollar-denominated CBOT futures contract.
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